Così, Inc : Così, Inc. Reports 2013 Second Quarter Results

          Così, Inc : Così, Inc. Reports 2013 Second Quarter Results

CONTACT:    William Koziel
(847) 597-8800           

                Così, Inc. Reports 2013 Second Quarter Results

DEERFIELD, IL - August 15, 2013 -  Così, Inc. (NASDAQ: COSI), the fast  casual 
restaurant company, today  reported a net  loss for the  second quarter  ended 
July 1, 2013 of $(2,135,000), or  $(0.12) per basic and diluted common  share, 
compared with net  income of $77,000,  or $0.01 per  basic and diluted  common 
share, reported for the 2012 second quarter. The calculated net income (loss)
per share for  both quarters reflects  the impact of  the reverse stock  split 
that was effected on May 9, 2013.

Così's total revenues for the 2013  second quarter decreased by $2,900,000  to 
$23,408,000 from $26,308,000  in the 2012  second quarter. Company-owned  net 
restaurant sales decreased  by $2,666,000 to  $22,656,000 from $25,322,000  in 
the 2012 second quarter. Franchise fees  and royalty revenues for the  quarter 
contributed $752,000 compared  to $986,000  in the 2012  second quarter.  The 
decline in revenues compared to last  year's second quarter was due  primarily 
to the closure of six Company-owned  and seven franchise locations during  and 
subsequent  to  the  second  quarter  of  2012,  the  decline  in   comparable 
Company-owned store sales  and the impact  of franchise fees  recorded in  the 
2012 second quarter  resulting from  the termination of  two area  development 

System-wide comparable restaurant sales for the second quarter as measured for
restaurants in operation for more than 15 months recorded an aggregate decline
of 2.7%  as  compared  to  the  second quarter  of  2012.  The  breakdown  in 
comparable sales between Company-owned and franchise-operated restaurants  are 
as follows:

For the 13 weeks ended
   July 1, 2013
Company-owned             (3.6%)
Franchise-operated            (1.4%)
Total System                (2.7%)

"We must reverse the decline in our revenues. The long term viability of  our 
business depends upon it. We recognize  the urgency of our situation and  are 
working  diligently  to  make  this  happen,"  said  Stephen  Edwards,  Così's 
President and Chief Executive Officer. 

2013 Second Quarter Financial Performance Review

Così's aforementioned $2,666,000 decrease in second quarter Company-owned  net 
sales as compared to the 2012 second quarter was due primarily to a $1,813,000
decline in net sales  from six locations closed  during and subsequent to  the 
second quarter of 2012 as well as a 3.6% decrease in comparable restaurant net
sales. The decrease in Company-owned comparable net sales during the  quarter 
was comprised  of  a 5.0%  decrease  in traffic  partially  offset by  a  1.4% 
increase in average guest check.
For the second quarter, Così reported a 550 basis point increase in costs  and 
expenses related to  Company-owned restaurant  operations as  a percentage  of 
restaurant net sales  compared with  the second  quarter of  2012. The  change 
resulted from increases of 230, 170 and  150 basis points, as a percentage  of 
net sales,  in  labor  and  related  benefits  expense,  occupancy  and  other 
restaurant operating expenses and the cost of food and beverage, respectively.
The increase in labor  and related benefits expense  and occupancy and  other 
restaurant operating expense as a percentage  of net sales was due largely  to 
the deleveraging impact of the comparable restaurant net sales decline on  the 
fixed portion of  these costs  in the period.  Also impacting  our labor  and 
related benefits expense for  the quarter was an  increase in employee  health 
care costs. The increase in the cost of food and beverage as a percentage  of 
net sales was  largely due  to a sales  mix shift  to menu items  that have  a 
higher cost as a percentage of net sales, the impact of a greater use of fresh
vegetables in our product  offerings and the launch  of the new bowl  category 
this year which  has a higher  than average  cost when compared  to the  other 
entrée categories but also  has higher than average  gross margin dollars  per 

During the second quarter  of 2013, the  Company's general and  administrative 
expenses increased by $212,000, to $3,141,000 or 13.4% of total revenues  from 
$2,929,000 or 11.1% of total revenues in the 2012 second quarter due primarily
to a charge for severance that was recorded in the quarter.

Così reported that  as of July  1, 2013 it  had cash and  cash equivalents  of 
$11,963,000 and virtually no debt other than lease obligations.

About Così, Inc.
Così^® (  is a  national fast  casual restaurant  chain 
that has  developed  featured foods  built  around a  secret,  generations-old 
recipe for crackly  crust flatbread. This  artisan bread is  freshly baked  in 
front of  customers  throughout  the  day  in  open-flame  stone-hearth  ovens 
prominently located  in  each  of  the restaurants.  Così's  warm  and  urbane 
atmosphere is geared  towards its sophisticated,  upscale, urban and  suburban 
guests. There  are currently  72 Company-owned  and 49  franchise  restaurants 
operating in  sixteen  states,  the  District of  Columbia,  the  United  Arab 
Emirates, and Costa Rica.  The Così^® vision is  to become America's  favorite 
fast casual restaurant  by providing customers  authentic, innovative,  savory 
food while remaining an affordable luxury.

The Così^®  menu features  Così^®  sandwiches, freshly-tossed  salads,  bowls, 
breakfast wraps, melts, soups,  Così^® Squagels^®, flatbread pizzas,  S'mores, 
snacks and other desserts, and a wide range of coffee and coffee-based  drinks 
and other specialty beverages. Così^® restaurants are designed to be welcoming
and comfortable  with  an eclectic  environment.  Così's sights,  sounds,  and 
spaces create  a tasteful,  relaxed ambience  that provides  a fresh  and  new 
dining experience.

"Così," "(Sun & Moon Design)" and  related marks are registered trademarks  of 
Così, Inc. in the U.S.A. and  certain other countries. Copyright © 2013  Così, 
Inc. All rights reserved.

1995. This press release contains statements that constitute forward-  looking 
statements under the federal  securities laws. Forward-looking statements  are 
statements  about  future  events  and  expectations  and  not  statements  of 
historical fact. The words  "believe," "may," "will," "should,"  "anticipate," 
"estimate," "expect,"  "intend,"  "objective," "seek,"  "plan,"  "strive,"  or 
similar  words,  or  negatives  of  these  words,  identify  forward-  looking 
statements. We  qualify  any  forward-looking  statements  entirely  by  these 
cautionary factors.  Forward-looking  statements  are  based  on  management's 
beliefs, assumptions  and expectations  of  our future  economic  performance, 
taking  into  account  the  information  currently  available  to  management. 
Forward-looking statements involve risks and uncertainties that may cause  our 
actual results, performance or financial  condition to differ materially  from 
the expectations  of future  results, performance  or financial  condition  we 
express or  imply  in  any  forward-looking  statements.  Factors  that  could 
contribute to these differences include, but  are not limited to: the cost  of 
our  principal  food   products  and   supply  and   delivery  shortages   and 
interruptions;  labor  shortages   or  increased  labor   costs;  changes   in 
demographic trends  and consumer  tastes  and preferences,  including  changes 
resulting from concerns over nutritional  or safety aspects of beef,  poultry, 
produce, or other  foods or the  effects of food-borne  illnesses, such as  E. 
coli, "mad cow disease" and avian influenza or "bird flu"; competition in  our 
markets, both in our business and  in locating suitable restaurant sites;  our 
operation and  execution  in new  and  existing markets;  expansion  into  new 
markets including foreign markets; our ability to attract and retain qualified
franchisees and  our franchisees'  ability  to open  restaurants on  a  timely 
basis; our ability  to locate suitable  restaurant sites in  new and  existing 
markets and negotiate acceptable lease terms; the rate of our internal  growth 
and our ability to generate  increased revenue from our existing  restaurants; 
our ability to generate positive cash flow from existing and new  restaurants; 
fluctuations in our quarterly results due to seasonality; increased government
regulation and  our  ability  to  secure  required  government  approvals  and 
permits; our ability to  create customer awareness of  our restaurants in  new 
markets; the reliability of  our customer and  market studies; cost  effective 
and timely  planning, design  and build  out of  restaurants; our  ability  to 
recruit, train and  retain qualified  corporate and  restaurant personnel  and 
management; market  saturation  due  to new  restaurant  openings;  inadequate 
protection of  our intellectual  property; our  ability to  obtain  additional 
capital and  financing;  adverse  weather  conditions  which  impact  customer 
traffic  at  our  restaurants;   and  adverse  economic  conditions.   Further 
information regarding factors that could affect our results and the statements
made herein  are included  in our  filings with  the Securities  and  Exchange 

           Additional information is available on Così's website at
 in the investor relations section.

Financial Statements Q2 2013 - Press Release Final


This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: Così, Inc via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.